Dr. Vranjes Firenze - Sustainability Report 2023

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EXQUISITE FRAGRANCES FROM FLORENCE

A

CONCRETE COMMITMENT TO SUSTAINABILITY THAT SMELLS OF THE FUTURE.

As the CEO of Dr. Vranjes Firenze, I am pleased to present our 2023 Sustainability Report. This document is not only a detailed report of the company’s performance, but also a testament to our concrete and tangible commitment to a more sustainable and responsible future, in line with the values that have distinguished us for years and which we now share with the L’OCCITANE Group.

Our company is deeply rooted in Tuscany, celebrating this extraordinary region and passionately supporting its culture, community, and environment. In a world facing increasingly complex challenges, we feel a strong responsibility to operate sustainably, creating value at the economic, social, and environmental levels. Among the most significant achievements of 2023, we are pleased to highlight the reduction of CO 2

emissions, achieved through the optimization of our production processes and the adoption of renewable energy sources. Specifically:

• In 12 months , we reduced CO 2 emissions by 68% by replacing the plastic used as filler in shipping cartons with recycled paper. This is a significant step toward more ecofriendly and environmentally respectful packaging.

• In just 6 months , we further reduced CO 2 emissions by 20% by turning off the last diesel generator and powering our facilities entirely with electricity from renewable sources.

Our commitment to sustainability does not stop here, and we are ready to continue improving and innovating. Among our main goals for the coming years are:

• Sustainable Innovation : Continuously investing in research and development to create cutting-edge, sustainable products that are fully respectful of the environment. We believe that science and innovation are key tools for building a more responsible future.

• B-Corporation Certification : We have embarked on a journey to obtain the prestigious B-Corp certification by 2026. This certification would recognize our tangible commitment to sustainability and corporate social responsibility, strengthening transparency and trust among all our stakeholders.

We firmly believe that sustainability is not only a duty but a unique opportunity to create long-term value for our company, for people, and for the environment.

We thank you for the trust you place in Dr. Vranjes Firenze and for your continued support on our journey towards a more sustainable future. Together, we can make a difference.

Enjoy the reading!

1 . DR. VRANJES FIRENZE AT A GLANCE

GLOBAL PRESENCE

Dr. Vranjes Firenze S.p.A

DRV UK LTD

DRV US Corp.

DR. Vranjes Cosmetics Trading (Shanghai) Co., Ltd.

Revenue:

35,3 mln € in 2023

33,5 mln € in 2022

Present in: 82 countries in 2023

75 countries in 2022

International Sales 71% in 2023

70% in 2022

OUR PEOPLE

137 Employees (9% increase compared to 2022)

90% Permanent Employees

58% Female employees

2.240 h of training provided in 2023

ENVIRONMENT 1

:

Emission intensity index of 2,77 direct tCO2/M€2

In 2023, 85% of purchases made from local Italian suppliers. Of our suppliers, 42% are based in Tuscany.

100% electricity sourced from renewable energy

98,11 tCO 2 total Emissions Scope1+ Scope2 Market Based (-23% compared to 2022)

1.1 OUR IDENTITY BETWEEN TRADITION AND INNOVATION

DR. VRANJES FIRENZE IS AMONG THE LEADING ITALIAN LUXURY BRANDS, FOCUSED ON ELEGANCE AND CONTEMPORANEITY

Based in Florence and founded in 1983 by Maestro Profumiere Paolo Vranjes, our brand represents tradition, Florentine craftsmanship and innovation. Entering the fragrance world of Dr. Vranjes Firenze means choosing unique signature scents to discover moments of multisensorial well-being and an indulging, Italian-inspired lifestyle. Our passion is to design immersive olfactory experiences . Each aroma is carefully formulated, resulting in a collection of original fragrances that aims to evoke pleasure and comfort.

Every aspect of our production is thoughtfully designed, sourced, and executed. Our supply chain is mainly centered in Tuscany, around Florence, allowing us to keep our environmental impact low. We work with local artisans to produce durable glass cast bottles with our iconic octagonal design. Our refill system ensures the longevity of our products, while the recyclable packaging aims to reduce waste.

We select materials and processes that meet our high standards for quality and sustainability, being mindful not only of what we create, but how we create it.

WE BELIEVE OUR HISTORY OF EXCELLENCE AND INNOVATION TRANSCENDS THE FRAGRANCE INDUSTRY AND IT IS THE FOUNDATION OF DR. VRANJES FIRENZE’S BRAND AND IMAGE

Throughout the years, we have expanded our range of product from room diffusers to s cented candles , lamparfum and more recently to personal care and fragrances for the car. From our plants located in Sesto Fiorentino and Antella, we export to over 82 countries (75 in 2022) around the world, with a strong presence in Asia. In 2023, the main countries where we exported were the Middle East, Japan, China, UK and the United States

OUR HISTORY

OUR HISTORY AND MILESTONES

The story of Dr. Vranjes Firenze is intertwined with Maestro Profumiere Paolo Vranjes’ life, a Florentine chemist, pharmacist and cosmetologist, whose work has always been inspired by the beauty of nature. His personal experiences and universally shared memories are crafted into fragrances that can be experienced by all. We represent a territorial reality that throughout our history has distinguished itself for its craftsmanship and creativity that have been inspired by the city of Florence, a city known for its historic tradition and production of perfume.

1983 | THE ANTICA OFFICINA DEL FARMACISTA

Anna Maria and Paolo Vranjes founded Antica Officina del Farmacista on Via San Gallo, in the center of Florence.

2008 | DR. VRANJES FIRENZE IS BORN

The company becomes Dr. Vranjes Firenze. The octagonal shape of the dome of the Florentine cathedral becomes the seal of approval for all the furnishing accessories, enhancing their unique style and iconic design.

2017 | DR. VRANJES FIRENZE EXPANSION

BlueGem Capital Partners joins the Vranjes family in managing the company to accelerate its growth and international expansion.

2022 | DR. VRANJES FIRENZE WORLDWIDE

Having achieved excellence in ambient perfumery, on the threshold of Dr. Vranjes Firenze first 40 years of history, Dr. Paolo Vranjes decides to take on a new olfactory challenge by offering a new Eau de Parfum collection.

2023 | DR. VRANJES FIRENZE PART OF L'OCCITANE GROUP

Becoming part of the L'OCCITANE Group represents the ideal union of tradition and innovation, olfactory excellence and beauty expertise, Florentine craftsmanship and international vision. A unique opportunity to create a global Brand & Fragrance hub in which each company maintains its autonomy and contributes to success with its own identity. The founding values of Dr. Vranjes Firenze - the excellence of raw materials attention to detail, passion for creating unique fragrances - remain firmly at the heart of the Brand, guaranteeing the continuity and consistency that its loyal customers have always appreciated.

2 . OUR RESPONSIBLE BUSINESS

Fueled by Master Perfumer Paolo’s passionate experimentation, our Company is dedicated to the art of immersive perfumery using the precision of science and the essence of memory.

Each of our blends is masterfully formulated, resulting in an array of original fragrances that evoke luxury and comfort.

CREATING SUSTAINABLE VALUE THROUCH DONATIONS AND WORKING WITH CHARITABLE ORGANIZATIONS3

We are committed to protecting the environment, helping our communities, and empowering the people that supply, design, produce, sell, and bring home our beloved creations. We are a socially active Company and supporters of some foundations present in the Tuscan region, and beyond. Among them, we support Istituto degli Innocenti in Florence , working with the young mothers supported by the institute to create scented ceramic discs for linen drawers, teaching them valuable artisanal skills.

2.1 CORPORATE GOVERNANCE BASED ON INTEGRITY

The fragrance sector must comply with extensive international, national and local laws and regulations, as well as industry selfregulations. Dr. Vranjes Firenze is committed to creating a culture of sustainability to address this complex scenario. This culture demands efficient corporate governance and risk management, a proactive decision-making process and openness to change.

The Company is guided by the Board of Directors, whose role is to define the business strategy, the commercial direction of the Company and its long-term growth objectives. The Board is nominated by the shareholders, and plays a key role in running the business in a proper and responsible manner, ensuring the creation of a shared and sustainable value over time. The Board of Directors does not delegate any responsibilities for

managing the organization’s impacts and in case of conflict of interests, the member subject to the conflict shall abstain.

The CEO - Giuseppe Colotto - holds a strategic supervisory role with administrative and representation powers. As shown in the Managerial Framework in the following page, he supervises eight key areas of the company, which are headed by as many managers, of which three women

Among those managers,the CFO and COO are responsible for reviewing and approving the reported information, including the organization’s material topics.

The lean and efficient organizational structure of our Company, illustrated below, is reviewed regularly to ensure effectiveness and efficiency of management.

As of today, the Board of Directors is composed of three members, as shown in the table below:

Managerial F ramework

CEO

2.2 ETHICAL BUSINESS

DR. VRANJES FIRENZE OPERATES ACCORDING TO VALUES THAT HAVE MARKED ITS HISTORY, BUSINESS MANAGEMENT AND SUCCESS. RESPECT, INTEGRITY AND COOPERATION PREVAIL IN OUR WORKING ENVIRONMENT AND REPRESENT THE FOUNDATION OF OUR VALUES.

In accordance with the Italian Legislative Decree no. 231/2001 , regarding the principle of corporate administrative responsibility, Dr. Vranjes Firenze has adopted in 2021 an Organizational , Management and Control Model (MOGC 231). The model dictates the main rules of conduct for all employees of the Company and defines responsibility for certain types of crimes committed by qualified representatives of the Company in the interest or to the advantage of the Company itself. The MOGC 231 is to be updated periodically in line with changes to the regulatory landscape.

The foundation of Dr. Vranjes Firenze’s Governance Model is the Code of Ethics that represents a set of values recognized, adhered to and promoted by the company. In 2021 we have adopted and formalized a shared Code of Ethics, that seeks to give all directors, managers and employees of the Company, and anyone else working for it or on its behalf, guidelines on the right methods and forms of interaction with different stakeholders. The recipients of the Code of Ethics are all those who, directly or indirectly, permanently, or occasionally, work with or for Dr. Vranjes Firenze. Our Code of Ethics is based on the following principles of business ethics:

• Legality and Responsibility

• Principle of loyalty (of the employee to the Company)

• Value of the person (human rights and diversity)

• Fairness, loyalty, and cooperation

• Impartiality and principle of non-discrimination

• Health and Safety

• Environment and sustainable development

Dr. Vranjes Firenze endorses the United Nations (“UN”) Declaration on Human Rights , the International Labor Organization (“ILO”) Conventions and the Organization for Economic Co-Operation and Development (“OECD”) Guidelines for Multinational Companies. Accordingly, the Code of Ethics is intended to be consistent with such guidelines and aims to ensure that all members of our workforce act with the highest level of integrity, comply with applicable laws and

build a better future for our Company and the communities in which we do business. Dr. Vranjes Firenze supports the United Nations Global Compact , expressing its support for the ten principles that include human rights, labor, environment and anti-corruption. Our commitment is to internalize the principles of the Global Compact as a key element of our strategy, culture and activities that the Group is implementing. For this reason, Dr. Vranjes Firenze recognizes the importance of free, open and fair competition; therefore, we repudiate any form of unlawful conduct and abuse of dominance. Dr. Vranjes Firenze rejects any form of bribery of public and private entities and therefore Italian or foreign companies are committed to complying with the six principles expressed by the UK Bribery Act 2010 to prevent bribery.

DR. VRANJES FIRENZE IS COMMITTED TO THE HIGHEST STANDARDS OF INTEGRITY IN ALL INTERNAL AND EXTERNAL AFFAIRS AND DOES NOT TOLERATE ANY KIND OF UNLAWFUL ACTS.

The company has implemented a Code of Ethics that defines and guarantees compliance with its founding values. Each manager is committed to monitoring the correct behavior of his or her own employees as well as external stakeholders, and each employee has the possibility of requesting direct contact with HR and - in more serious cases - the CEO. Above these figures, there is also a Supervisory Board made up of two internal members of Dr. Vranjes Firenze and three external members, in accordance with the L.231 model, whose task is to supervise the company's operations and ensure the correct application of the Code of Ethics, intervening if necessary (even at the request of an individual employee). Each employee has received specific training concerning the L. 231 model and knows the members and direct references of the Supervisory Board, which they can contact directly and without intermediaries, either explicitly or anonymously. During 2022 there were no concerns in this area.

Dr. Vranjes Firenze has adopted a structured whistle-blowing system to report irregularities and potential wrongdoing, including instances of non-compliance by employees and third parties with environmental, human rights and integrity laws and regulations. In this respect, there were no cases or legal actions for anti-competitive behavior for 2023, in line with previous years.

SOLE 24 ORE - GROWTH LEADER

This is a clear indication that these self-regulation measures are effective and represent a valid protection for the Company. If there are any critical issues, reference is made directly to the Board of Directors. Moreover, in 2022 there were no cases of non-compliances to rules and regulations, therefore no fines were issued against Dr. Vranjes Firenze.

In 2022 Il Sole 240re listed Dr. Vranjes among the 500 Italian firms that registered a most significant growth within the last four years. We are extremely proud of this result, as it shows that sustainability and economic growth can walk on the same path, a path we have happily embraced together with our employees, which have almost doubled since 2018. And that's the figure that truly make us a "Growth Leader".

ADDRESSING RISKS

WE ARE COMMITTED TO CREATING A MORE SUSTAINABLE TOMORROW

Creating such a reality requires effective risk management, responsible decision making, and innovation. Our efforts are aimed at minimizing the negative impacts of our business. During 2021, a preliminary risk assessment analysis was performed.

Although there is not yet in place a formalized Risk Management System, we believe that it is of crucial importance to identify the main risks to which our Company is exposed to effectively measure, manage and monitor them. In this regard, the main riskareas that have been identified are:

Inherent risks based on business model

Occupational health and safety

Brand Reputation

Environmental crimes

Offences against the public administration

Actions taken to mitigate the identified risks

In addition to health and safety standard procedures - always a priority and continuously updated and upgraded - after the pandemic, we have strengthened the attention to our people's mental health and, among other measures, introduced the opportunity for remote work to improve work-life balance.

A very precise check was carried out on all our communication touchpoints, social networks, website, etc.

2020 Waste Management Review.

Adoption of 231 MOGC Model.

3 . OUR APPROACH TO SUSTAINABILITY

DR. VRANJES FIRENZE’S COMMITMENT TO SUSTAINABILITY HAS STRENGTHENED OVER THE PAST YEARS, AND IN 2021 IT HAS LED US TO DRAFTING OUR FIRST SUSTAINABILITY REPORT.

Dr. Vranjes Firenze strived to respond with conviction to its stakeholders’ new needs, prioritizing the well-being and welfare of its employees. As a result, sustainability became even more integral to our decision-making processes.

We are working considerably on the ongoing integration of social and environmental sustainability within our business model through initiatives aimed at preserving the environment ,

helping our community and enabling those who supply, develop, manufacture, sell and deliver our treasured products. Despite the serious global crises of the recent years,throughout 2023, the Company remained committed to sustainability. It achieved important targets, as will be explained more in detail in the following chapters, confirming the will of the management team of Dr. Vranjes Firenze to continue investing in this direction.

3.1 STAKEHOLDER ENGAGEMENT AND MATERIALITY ANALYSIS

Dr. Vranjes Firenze is aware of the role that customers and other stakeholders play in defining and pursuing the Company’s objectives.

For this reason, by actively listening to the needs of our stakeholders , we seek to anticipate their expectations with the goal of defining a strategy that aims at creating value in the medium to long term.

The identification and description of our most crucial stakeholders was an essential starting point for the integration of the sus -

tainability path within the corporate strategy. The stakeholders identified are those who are most affected by business operations and those that have a direct or indirect impact on the Company’s activities and results.

Relevant stakeholders were identified through a study of the specific characteristics of Dr. Vranjes Firenze and an analysis of the reference sector, while taking into consideration national and international best practices.

This process has led to the identification of nine key stakeholder categories , shown below:

Reflecting on significant issues related to the economic, environmental and social impacts of our organization, and on the influence of stakeholders' assessments and decisions, 21 potential material impacts were identified in 2023. Dr. Vranjes Firenze's Materiality Analysis is of paramount importance because it reflects both the issues relevant to us and the interests and expectations of our stakeholders.

Our Materiality Analysis process for 2023 was developed following the new guidelines defined by the GRI Universal Standards 2021, in particular GRI 3: Material Topics 2021.

The materiality analysis, carried out through an analysis of the external (benchmarks, analysis of press releases) and internal contexts (Company documentation, changes in activities and internal structures, perimeter, etc.), was carried out through

the involvement of our Top Management, a key player in the implementation of our social responsibility policies and initiatives.

This year, unlike the methodology followed in previous years, the Company considered and mapped the main positive and negative impacts that the organization generates or can generate through its activities and business relations on the economy, environment and people, including and emphasising respect for human rights.

Based on the impacts identified, it was possible to draw up a list of material impacts.

The positioning within the matrix of the material topics below, derives from an assessment of the relevance expressed by the stakeholders and the Group's oversight of each impact expressed by management.

The analysis confirms the importance of the issues related to the principle of Governance, Economic responsibility and towards our Products. The results are aligned with the identity of our Company, oriented towards an ethical business and aimed at satisfying our customers by ensuring the highest quality and safety of our products , while being proudly Made in Italy In addition, the growing importance of issues related to the prin-

ciple of " Environmental responsibility " reflects the evolution of European regulations and market pressures, as well as our ongoing transition towards a more sustainable business model. The material topics related to the impacts identified are analyzed in the subsequent chapters within this Sustainability Report and include a qualitative description of management’s approach and, where available, selected performance indicators.

3.2 OUR CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS

To confirm our commitment to sustainability, we initiated a process aimed at defining our sustainability goals, starting from the foundation provided by the United Nations’ Sustainable Development Goals (SDGs) and translating them into concrete actions to be developed in-house. The Sustainable Development Goals (SDGs) are the 17 goals approved by the United Nations within the 2030 Agenda,

ENVIRONMENTAL SUSTAINABILITY

VALUE OF THE PEOPLE

DEVELOPMENT OF THE LOCAL TERRITORY

which sets out the guidelines for all countries to contribute to a sustainable global development.

This process drew the identification of the main objectives to be pursued in our operations, defining our commitment to contribute to 7 SDGs , which are more closely related to our activities and commitments in the medium and long term.

We are aware of the environmental and social impacts resulting from our activities, which will guide us in defining the strategic lines of the Sustainability Project that we aim to formalize in the coming years.

We are committed to having a positive impact on employment through the personal and professional development of our people, aimed at the inclusive and sustainable growth of our people. In this regard, we undertake a considerable focus on gender equality, ensuring women's full participation and equal opportunities for leadership within the entire Company.

We are committed to facing the challenges of the future with the awareness of the excellence of Made in Italy, aiming to export it abroad. Moreover, we aim to contribute to the economic growth of the areas in which we operate by supporting the development of local communities through partnerships with foundations and socially active organizations.

We are aware of the environmental and social impacts resulting from our activities, which will guide us in defining the strategic lines of the Sustainability Project that we aim to formalize in the coming years.

We have established a committee that meets regularly to monitor our progress and, as of the last quarter of 2021, we have appointed a member of staff to be fully dedicated to our ESG program.

Sustainability Report 2023 | Dr. Vranjes Firenze

4. RESPONSIBLE CULTURE & MADE IN ITALY

THE TRADITION OF MADE IN ITALY AND OUR BRAND’S HERITAGE HARMONIOUSLY INTEGRATE WITHIN THE CONTEMPORARY.

We have a history based on a solid and enduring foundation, on values that have been steadily reinforced for forty years. These values are a testament to tradition, quality and craftmanship, the intrinsic elements of a Made in Italy production which we strive to manifest in all our beautifully tailored creations. We are part of the Italian associations Cosmetica Italia, Federchimica, Assocasa and we are devoted to our craft and find deep satisfaction in achieving the highest quality at each stage of our production process, from our glass home fragrance diffusers crafted by Tuscan craftsmen to the fragrances of our scented candles.

Since the founding of the Company, Dr. Paolo Vranjes has been working toward a vision of exquisitely crafted and richly evocative olfactory experiences, with a focus on innovation and sustainability.

In fact, Dr. Vranjes Firenze believes in sustainable global growth in the common interest of all stakeholders and is aware of the impact that its activities have on the economic and social development worldwide.

4.1

SOCIAL COMMITMENT:

HOW WE GIVE BACK

We are committed to having a positive impact on the areas where we operate, paying particular attention to the development of the local communities.

To this end, over the years we have supported and developed several initiatives and cooperation with foundations and charity organizations around Tuscany.

WE CREATE EMPLOYMENT OPPORTUNITIES FOR SOCIALLY DISADVANTAGED AND DISABLED INDIVIDUALS

Starting from 2022, we stipulated a three-year agreement with the Targeted Placement of Florence and the Archimede Cooperative (a local organization specialized in introducing people with severe psychomotor disabilities into the workplace). Thanks to this collaboration, Dr. Vranjes Firenze guarantees the employment of disadvantaged people in a protected and controlled environment, thus improving their economic condition and, most importantly, their social life. Through this agreement, we have outsourced part of our daily process of packaging the sticks necessary for the diffusion of our fragrances: it is a simple activity but essential for our core product. The resources - guided by Archimede's specialized operators - thus manage to acquire job stability that guarantees them economic independence and also to perceive the added value of their work, with the awareness of participating personally in creating a product appreciated worldwide for its quality and elegance.

5 . OUR PRODUCTS: HERITAGE & KNOW-HOW

Dr. Vranjes Firenze represents the culture of Italian knowhow and has always been synonymous of craftsmanship and Made in Italy. In each of our products there is a balance between creativity, quality, attention to people and sustainability. There is the effort of a Company that believes and invests in research that supports Made in Tuscany, which has remained at the heart of our path for 40 years and enables it to preserve a wealth of knowledge of priceless value. Our products can be found all over the world: we have more than 440 authorized dealers, 28 flagship stores, 33 shop-in-

ROOM DIFFUSERS

shop and many partners ranging from major retailers and luxury hotels to the most prestigious showrooms. Behind the story of every single product, we strive to build a unique story, selecting high quality and local ingredients coming from all over the world and masterfully blended in Florence. This high-quality selection gives visibility to the local excellence of the region.

The wide range of our products can be grouped into five main product categories:

Our fragrances are available in various scented décor objects and are divided into Traditional Fragrances and Collection Fragrances . The quality of the raw materials guarantees the best olfactory experience in terms of duration and persistence. Our iconic bottle is inspired by Brunelleschi’s Dome, a poetic homage to the beloved Duomo that symbolizes the historic center of our city, Florence.

CANDLES

The Candle Collection is the result of extensive research and the development of an exclusive production technique: pure essences that enhance the strength of the fragrance and certified, highquality, waxes. This decorative accessory is high-performing and guarantees the highest level of safety. Each candle is poured into a sophisticated octagonal glass vase that is handcrafted by skilled artisans and whose colors are inspired by four precious materials: pearl, tourmaline, gold and onyx.

LAMPARFUM

The Lamparfum represents the ideal decorative accessory for those looking for a catalytic lamp that rapidly decorates and perfumes spaces by diffusing the essence faster through heat (from 20 to 60 minutes). The result is a more intense aroma that not only adorns any living space with charm but also neutralizes unpleasant odors.

CARPARFUM

This collection was designed to diffuse our signature scents in any vehicle while adding a stylish touch. Available in three finishes, the Carparfum spreads some of our most beloved fragrances with the use of the car's air ventilation system. The Carparfums are also fully rechargeable, meaning the scent can be switched according to our customer’s preferences while being durable and everlasting olfactive décor objects.

EAU DE PARFUM AND SCENTED BODY CARE

Dr. Vranjes Firenze's latest launch, the Eau de Parfum and Scented Body Care Collection reimagined six of our most iconic ambient fragrances into captivating, personal fragrances and body products.

The Eau de Parfums are signature perfumes of excellence that offer longlasting olfactory experiences to be carried with you always.

The Scented Body Care range represents the excellence of Made in Italy formulations, and enriches our customers' scented rituals by providing an indulging feeling for all the senses.

SPECIAL EDITION ROSSO NOBILE: 40 YEARS TOGETHER

To celebrate our 40th anniversary, we are launching a sophisticated Limited Edition dedicated to Rosso Nobile, the most iconic of our creations. A timeless icon, elegant and enveloping, Rosso Nobile marked a turning point in the brand's history. For the anniversary, Rosso Nobile dresses up for the occasion and is presented in a collector’s coffret in the original green from 1983, decorated with a precious gold pattern that reveals, among Florentineinspired geometric shapes, the number 40.

Much more than a fragrance, a true collector's masterpiece, a design object that, inspired by the finest Tuscan red wines, becomes the perfect toast to celebrate this important milestone.

5.1 EXCELLENT QUALITY AND SAFETY

The quality and safety of the product are paramount and are an absolute priority. The significant importance of our product quality has been highlighted by our Company throughout the years as one of the main focus areas for our investments.

Starting from several certification guidelines, we have structured methodologies and procedures for the management of all aspects related to product quality. This path is proceeding across all Dr. Vranjes Firenze’s products, both for aspects related to the product itself and for those related to its packaging. In this

way, we aim to integrate the process of quality and control with the standards’ requirements that our market demands. Today, the high quality and safety standards of our products are ensured by complying with the European CLP regulation (Classification, Labelling and Packaging), which reports information on the hazardous raw materials.

We are Halal-certified for Diffusers, Candles, Lamparfum and Hand Creams, and in 2022 we obtained ISO 22716, GMP certification for cosmetic production. This has allowed us

Sustainability Report 2023 | Dr. Vranjes Firenze

to fully internalise the cosmetics production segment, from manufacturing to bottling to final packaging, thus reducing any transport-related emissions between the various steps. Our goal is to continue to improve: we are working to obtainISO 14001 environmental certification and health and safety certification ISO 45001 by 2024.

We have a dedicated Quality Control department that follows the product at all stages - from the acceptance of the raw materials to finished product controls and customer service. The expertise of our staff is complemented by the most advanced technological systems, the latest addition being a device - equipped with four cameras - that photographs products from all angles and is able to record any non-conformities extremely accurately and

OUR REGULAR SUPPLIER MEETINGS

precise. The careful internal control is supplemented, where necessary, by external control at certified laboratories, so that we can always guarantee the best quality and safety on all our products.

In 2023, we also worked on a CRM platform fully integrated with our IT systems, with the aim of creating a single system for managing customer relations and possible complaints. This integration allows efficiently respond to different needs, providing concrete and promt post-sales support.

We constantly strive to maintain a strong relationship with our value chain. In 2023, monthly meetings were planned to visit many of our suppliers in order to improve the relationship and have direct control over the quality of raw materials. During these meetings, all suppliers are involved in our sustainability journey, thanks also to the prior sharing of questionnaires and information material. The objective of these activities is to build a solid relationship, transforming suppliers into true business partners, making them participants in our values and success.

As proof of the partnership created, one of our main suppliers of essences, located in Grasse - the cradle of haute parfumerie -, invited two of our employees to visit the factory and work alongside them for a few weeks, greatly enriching our know-how and further strengthening the relationship.

5.2 CLIENT SATISFACTION

THE FOCUS ON OUR CUSTOMERS IS AT THE HEART OF OUR STRATEGIC APPROACH, WHICH PLACES THE SATISFACTION OF OUR CUSTOMERS' NEEDS AND REQUIREMENTS AT THE CENTER OF OUR BUSINESS.

Our primary objectives are to generate trust and to provide a pleasant shopping experience to our loyal customers. Moreover, over the years, we have acknowledged a growing demand from our clients to disclose the environmental impact of our products. Therefore, we adapted our communication strategies to ensure that clients are informed with full transparency on all of our processes and services. In this way, we guarantee a full disclosure of our sustainable and high-quality products.

Part of this aspect was also confirmed by our B2B Survey conducted in 2021, which involved a defined number of B2B customers. The results of the 2021 survey confirm a positive perception of the B2B customers on Dr. Vranjes Firenze's commitment to ESG. Specifically, 78% of the respondents

answered the question “How do you perceive Dr. Vranjes Firenze commitment to the ESG key elements?” with “Very good ”.

To maintain a bond of trust with our customers, we rely heavily on clear and effective communication Periodically, we publish Instagram posts to communicate our products' olfactory pyramids, and - on our website - we highlight sections that give more detail and explanations of our products. We dedicated efforts and resources to continuously improve our products' environmental impact. One of our core activities consists in expanding the use of recycled plastics for all of our refills.

5.3 RESEARCH AND INNOVATION

Our strategy aims to optimize both the manufacturing processes and the products to meet the desires of our stakeholders, who

MADE IN ITALY WELL-BEING

are increasingly demanding awareness and commitment to environmental issues.

Thanks to a licence agreement, we have designed and developed with Allegrini S.p.A a unique line of body lotion, hair conditioner, shower gel and shampoo that is offered in some of the most exclusive hotels around the world. This line of precious cosmetic formulation is enclosed in a packaging made from recycled materials, in our iconic octagonal shape that evokes the magnificent architecture of Florence's cathedral.

A COMMITMENT TO NATURE: REPLACING WHITENED STICKS WITH NATURAL ONES

In an effort to make our products more natural and environmentally sustainable, we are replacing the whitened sticks with natural sticks and we plan to complete the process within the first three months of 2023. With this change, our fragrances will be diffused in a more sustainable way that avoids the ennvironmental impact caused by the whitening process.

REPLACING BHT

We are committed to increasing the naturalness of the formulas of the diffusers, through the replacement of BHT (Butylated Hydroxytoluene) with ecological antioxidant. Currently the formula of our fragrances is composed on average of about 70% alcohol of agricultural origin (wheat), about 17% propylene glycol of synthetic origin, about 10% pure essence and about 0,5% BHT. In addition, other additives such as sun filters and colorants may be present. Moreover, as BHT contributes substantially to the environmental hazard of our fragrances, we decided to replace it with TINOGARD TT, a substance with compatible performances: that is much safer for the environment. TINOGARD TT will replace BHT by the beginning of 2024.

5.4 INCREASINGLY SUSTAINABLE AND CIRCULAR PRODUCTS

Dr. Vranjes, aiming to be increasingly sustainable, has undertaken a number of initiatives to reduce the use of virgin raw materials and to promote the circularity of our products. The shape of some of our gift packaging was revisited in 2023, moving from a ‘horizontal’ bottle version to a vertical bottle version, allowing us to reduce the amount of foam used while maintaining a neat and unmistakable design.

The beautiful glass bottle of our diffusers is a true design piece that will grace the homes of our customers for years to come, with fragrance refills always being promoted as a more sustainable

RECONDITIONING KIT FOR OUR DEALERS

alternative to buying back the glass bottle. In addition, all of our refill containers are now made of HDPE plastic, an extremely lightweight material - with a positive impact on emissions during transportation - that is durable and 100% recyclable. Finally, special attention is paid to the design of our packaging, designed so that it can find new life in our customers' homes. One example is our advent calendar, made of durable materials and easily converted - by removing the material inside the drawersinto a precious jewellery box.

At our retailers, the wear of the most delicate parts of the display vases, such as the front and neck label, made it necessary to replace the entire bottle. For this reason, we devised a ‘reconditioning kit’, complete with instructions for proper maintenance and washing of the vase, which enables us to offer an effective and timely service to retailers, who are encouraged by us to request it. From 2021 to 2023, this solution has enabled us to ‘save’ more than 2500 display vases, with considerable savings in material and resources for the production of new vases.

6 . AN INCREASINGLY SUSTAINABLE SUPPLY-CHAIN

While showcasing the excellence of Made in Italy with a closer focus on Florence and its surrounding areas, Dr. Vranjes Firenze has always been committed to supporting the development of local communities , promoting Italian manufacturers and artisans carefully purchasing products almost exclusively from Italian suppliers.

EVERY STEP OF OUR PRODUCTION IS METICULOUSLY PLANNED, SOURCED, AND CARRIED OUT.

Simultaneously, we conduct careful research on the materials we use and develop processes to satisfy our highest quality and sustainability requirements at every stage, paying attention not only to what we create, but also to how we produce it.

Our Company has two facilities: one located in Sesto Fiorentino, in the northern outskirts of Florence, and the other located in Antella , five kilometers southeast of Florence. The first is specialized in the production of home fragrances and the different activities this entails, it includes the storage and quality control of raw materials and finished products. In this facility, there is the mixing area, the product aging area and the bottling area. The main activities carried out are the receiving and storing of raw materials, the warehousing of by-products and the customized packaging for delivery. The second facility is the production site for cosmetics and it houses the Laboratory of Research and Development , our showroom and our marketing and administrative offices.

6.1 SUPPLY CHAIN CLOSE TO THE LOCAL COMMUNITY

We have a variety of suppliers ranging from historical and smallscale providers to larger and international firms. In 2023, the fleet of our main suppliers of raw materials and finished products is of 110 suppliers

During 2023 we have not purchased any materials from suppliers outside of Europe, due to careful forward planning, which allowed us to minimize our shipping impact for the materials. 42% of our suppliers are based in Tuscany, our home region, and account for 35% of the total spending. At present, Italian suppliers make

up 85% of the entire spending of our Company, confirming our commitment to the development of Made in Italy. As for European suppliers, which account for 15% of our spending, most of them are essence suppliers located in Grasse (in the south of France), which is considered the capital of perfume because of the precious and unique raw materials grown here. We are committed to maintaining transparent, cooperative and open relationships with all of our suppliers in order to maintain long- lasting relationships built on trust.

6.2 SUPPLIERS’ CODE OF CONDUCT

The principles on which we base the selection of our suppliers are safety, reliability and quality (i.e., adherence to our quality standards and adherence to delivery times).

Suppliers are selected through meetings and presentations held by our Purchasing Team which requires a variety of information, including how orders are handled and how the production plan is managed. Subsequently, we request quotes on various slots and samples to assess whether our quality standards are respected.

As a sustainable and resilient supply chain is essential to contributing to our sustainable development path, we have been continuously working on its improvement in recent years. It is our prerogative to raise awareness among our suppliers on the importance of growing toward a more sustainable business and adopting an ESG perspective. As an example, we require our paper suppliers to have the FSC (Forest Stewardship Council) label , to assess that the pulp that is used originates

WE ALWAYS AIM TO OPTIMIZE THE TRANSPORT

from a sustainable source. Furthermore, we aim to increase the percentage of the recycled glass that is used for our bottles. At the moment our bottles are made of at least 30% recycled glass, and our goal is to reach 50% within 2024.

Moreover, we are implementing a request for all our suppliers to use vehicles with lower CO 2 emissions , compared to the national average. In this regard, we are mapping all our suppliers’ distances in kilometers as well as the certifications their vehicles hold to quantify how much CO 2 is emitted during transportation.

The acceptance of the Code of Ethics and Code of Conduct will be a necessary condition for the inclusion of new suppliers in our portfolio and they will serve as a guide of conduct. We are creating a database on which to base our KPIs for the selection of suppliers, primarily on two indexes: the number of nonconformities and the index of service (Order in time in full).

In the creation and the delivery of every Dr. Vranjes Firenze product, we always strive to lower our environmental impact in terms of CO 2 emissions.

During 2021 we invested 40,000 euros in an additional 10,000-litre silo to store the alcohol used for our production. This investment has allowed us to lower our alcohol transport emissions by 65% , by reducing the number of alcohol deliveries we receive by truck.

For the transport of our finished goods, we prioritize shipments by sea over shipments by air to help further reduce our environmental impact.

7 . OUR PEOPLE

WORKING IN DR. VRANJES FIRENZE MEANS BEING PART OF A UNIQUE FUTURE-FOCUSED TEAM IN WHICH PEOPLE ARE THE MOST VALUABLE RESOURCE.

Dr. Vranjes Firenze’s work revolves around its people and we continued to invest in our human resources and strengthened several key strategic areas. Our efforts are steered towards ensuring a management based on principles of fairness, integrity and respect. Within our leadership and operations, we are committed to cultivating a healthy and supportive work environment where our employees and their families always come first.

As of December 31st, 2023, Dr. Vranjes Firenze employed a total of 137 people, with 90% permanent employees, and 24 new

90% PERMANENT CONTRACTS

OUR

hires compared to 2022.. Women represent almost 58% of the total workforce, generally outnumbering men in almost all professional categories.

The number of blue-collar workers (56) is the highest, despite being very close to the one of white-collar workers (59), which have been constantly increasing over the past two years. Most employees are in the 30-50 age range (about 73%), while people over 50 account for over 17% of the workforce.

PEOPLE 58% WOMEN 137 PEOPLE AS OF 31st OF DECEMBER 2023

FAIR COMPENSATION

Our salary policies are impartial and based on qualitative and quantitative results that are solely linked to business objectives. Typically, HR and managers evaluate pay raises during periodic meetings, and the CEO discusses and approves their suggestions. Since the end of 2022, the company has been using an external database to verify the alignment of its remuneration policy for each specific position, both on a local and national scale, to further validate the fairness of the compensation policy in place.

7.1 TALENT DEVELOPMENT

TALENT ATTRACTION AND RETENTION

Attracting talented people is an objective of fundamental importance for Dr. Vranjes Firenze, given that this is the only way to ensure that the high standard of the Company’s day-to-day activities is maintained. Over the last seven years the company has grown considerably: the revenue has more than doubled and our staff has more than tripled, and to this day we keep fulfilling our commitment and we continue to invest in our people.

The recruitment and selection of new talent is done by ensuring the utmost respect for diversity and inclusion , and equal opportunities for all. In the recruiting process, only skills, performance and attitudes are evaluated. We consider the right balance of the technical skills needed to cover the job with the transversal skills that facilitate integration into the Company to ensure the maintenance of a serene, collaborative and constructive working environment for all employees. In addition, for each new resource, we prepare a contractual framework that respects the experience and skills of that resource, always seeking a balance within the existing Company structure.

In the process of evaluating potential candidates, factors such as nationality, sexual orientation, political or religious orientation are not considered in any form or capacity.

EQUAL OPPORTUNITIES AND NON-DISCRIMINATION

Integration and diversity are two fundamental pillars of our culture, and this translates into the Company's commitment to ensuring equal opportunities for everyone in the workplace.

We do this, by removing all forms of discrimination based on gender, age, religion, origin, political opinion and sexual orientation.

By promoting these principles, we aim to boost our staff’s ability to interact effectively, optimizing their day-to-day performance. At the same time, our diversity is a precious tool to understand and respond to the unique needs of different markets.

Dr. Vranjes Firenze’s desire to respect these values is underscored in the Code of Ethics , in which we commit to ensuring that diversity and equal opportunities are respected at every level of the organization, with the principles of meritocracy upheld and all forms of discrimination rejected.

Our commitment to integration is represented by the significant proportion of female employees across all levels of our organization , which exemplifies how the presence of women in our workplace is a pivotal element of our corporate identity. The strong female presence is seen at all levels of the organization. The split between men and women is very balanced, although there are slightly more men among blue collars and more women among white collars

The offer of part-time contracts also confirms our commitment to equal opportunities: as of 31 December 2023, 4% of our employees benefited from these contracts. Moreover, we offer our employees the chance to take parental leave, in accordance with laws and regulations in the various countries.

Employee composition by gender – 2023 (GRI 405-1)

TRAINING OUR PEOPLE

Despite the challenges 2023 entailed, Dr. Vranjes Firenze continued its efforts to ensure complete alignment between the skills of its people and the demands of the market. Now, more than ever, employee training has a crucial role in enhancing the technical, managerial and organizational skills of personnel and consolidating the professionalism required by the role held. On the other hand, it represents a valuable way of

2240

CULTIVATING OUR EMPLOYEES’ KNOWLEDGE

sharing the Company’s values, beliefs and guidelines.

In 2023, Dr. Vranjes Firenze delivered around 2240 hours of training, providing 16,35 hours of training pro-capita. With the intention to continuously enhance the skills of our human capital, in the next two years we plan to promote the implementation of more training courses aimed at further fostering our team’s interdisciplinary and technical skills.

16,35

In 2023, two significant training processes continued, involving all company functions across various levels, from management to operational staff. Specifically, some employees completed a theoretical and practical course, resulting in the ISIPM certification as Project Managers. Additionally, fourteen employees obtained the international Black Belt Lean Six Sigma certification, aimed at implementing continuous improvement actions to enhance quality and reduce waste. This certification is applicable not only in the manufacturing sector but across all business processes.

CODE OF ETHICS AND HUMAN RIGHTS

The Code of Ethics and an independent Supervisory Board form the basis of protecting workers regarding human rights, the precautionary principle and the absence of discrimination. In general, respect for and co-determination of company values are recalled in all internal communication opportunities (regulations, notices, etc.), as well as being the basis of corrective actions carried out by the management where conduct not in line with the company spirit is highlighted. It should be noted that, to date, no episodes have ever occurred within the company that would highlight discrimination, the violation of human rights or the precautionary principle.

COACHING ONE TO ONE

During 2023, a one-to-one coaching system was activated, where the specific needs of each resource are identified and then an ad hoc training path is defined. These targeted enhancement courses concern both hard and soft skills. For example, with regard to hard skills, a course on the use of the Power Bi platform and an English course were activated, while relational and conflict management courses were offered for the enhancement of soft skills.

In addition, eight resources selected from across the company functions completed a Planning Certificate course. This oneto- one planning demonstrates the personal interest we take in our resources, who are the very foundation on which Dr. Vranjes Firenze is built.

PERFORMANCE AND EVALUATION

Already in 2019, we introduced an appraisal system, allowing for a structured and periodic evaluation of personnel. This assessment is based on an evaluation questionnaire completed by both the employee and her/his supervisor, and then shared with the Human Resources.

The aim is to highlight the strengths and areas of improvement of each person, with a view of instilling a process of continuous personal and professional development. This evaluation system was initially only applied to the management, but we decided to extend it to the whole firm starting from 2020. By 2021 the evaluation process was formalized so that it covers each employee hired at least 6 months prior to the yearly evaluation date. In 2023, 100% of our employees received a performance evaluation. The assessment is structured on five areas: result orientation, team working, leadership, personal attitudes and adherence to the Company. Each area is linked to three assessment references, each of which can be classified as "improvable", "good" or "excellent".

7.2 THE WELLBEING OF

OUR PEOPLE

According to our values, safeguarding the psychological and physical well-being of our employees means not only respecting their fundamental rights but also ensuring a peaceful and stimulating working environment characterized by freedom of expression. Employee wellbeing is a key aspect of our growth, and it is necessarily linked to the personal and professional growth of the team.

Dr. Vranjes Firenze committed to promoting various initiatives in favor of the welfare of all our employees. In 2020, we launched a wide range of initiatives providing economic support to employees. These are some of the initiatives:

• Company-discount with a local health facility

• Ticket restaurant

• Flexibility in terms of time management and remote working

• Corporate gifts for significant milestones in our employees' lives

In addition, each employee receives a welfare bonus worth EUR 1,000 usable on a multi-service platform that includes reimbursement of bills, family expenses, baby-sitting and other services. The bonus is supplemented by the annual gift, provided for all employees and delivered at Christmas.

In 2023 we began to elaborate a remote-working policy that will be formalised in 2024 and applied to all company functions whose tasks allow it, guaranteeing two days of remote working per week. In addition, more flexibility is foreseen for employees whose specific situations require it (e.g. pregnant women), even reaching individual agreements for 100% smart working.

7.3 HEALTH AND SAFETY

Safeguarding and ensuring the adequate health and safety conditions of our employees is a priority for Dr. Vranjes Firenze. Therefore, we pay particular attention to the management of these aspects in order to prevent and reduce the occurrence of accidents and injuries as much as possible, going far beyond the relevant legal requirements and obligations, based on the specific regulations in force in Italy.

The management of health procedures is the responsibility of the Employer, supported by the Health and Safety Officer, the Workers’ health and safety Representative and the competent doctor with whom we organize annual meetings to evaluate all the specific measures to take.

Our operations are regulated by our Health and Safety Policy, and we are committed to continuously improving health and safety performance through a comprehensive management programme. We set targets for health and safety performance, including lost time, reportable and non-reportable injuries. These targets are used to measure performance, which is regularly reviewed by the senior management.

In 2023 there was only one reportable injury.

In the field of health and safety, we are constantly committed to bringing awareness to our employees and collaborators of risk management and promoting responsible behavior. In this regard, we provide all staff with adequate and regular professional safety training, and we also provide each employee with the Company's risk assessment report, which identifies the risks for each specific task, classifying the various profiles at a low or high risk based on the job placement.

In addition to these mandatory trainings, we conduct "on the job" trainings for specific machines or specific tasks. Although we do not have any structured communication system through which our workers can report and eventually remove potentially dangerous situations, reports are made spontaneously by the Health and Safety Officer, the Workers’ health and safety Representative or by the Plant Manager.

8 . ENVIRONMENTAL PROTECTION

DR. VRANJES FIRENZE IS COMMITTED TO RESPECTING AND PROTECTING THE ENVIRONMENT BY AIMING TO REDUCE THE ENVIRONMENTAL IMPACT OF ITS ACTIVITIES THROUGH THE OPTIMIZATION AND RATIONALIZATION OF ALL PROCESSES THAT MAY HAVE AN EFFECT ON THE ECOSYSTEM.

We pay particular attention to the environmental impacts generated at every stage of our activities, not only in compliance with national and local legislative obligations, but also by researching and developing our own sustainable creations.

Specifically, our commitment to contributing to the fight against

climate change has been exemplified in recent years by several initiatives to reduce our environmental footprint. The control of the expenditure on energy, of the emissions in the atmosphere and of the impact on the environment in general, will continue in the coming years and the approach used will be progressively extended to all of our sites.

8.1 ENERGY EFFICIENCY AND EMISSIONS REDUCTION

The Sesto Fiorentino plant is the first local business unit of Dr. Vranjes Firenze that implemented energy saving measures. In the factory, LED lighting, which has a very low consumption rate, has been installed, as well as an extremely efficient air conditioning system.

Our Antella Headquarters was 18% self-sufficient in 2023 thanks to a photovoltaic plant that was built at the end of January 2021.

The remaining energy consumed in Antella, together with the entire energy consumed at Sesto Fiorentino, is responsibly sourced and it is 100% certified as renewable.

In 2023, Dr. Vranjes Firenze’s total energy consumption was 3.191 GJ.

The total energy consumption accounts for:

• 1.807 GJ of purchased electricity (1.805 GJ of which from certified renewable sources, accounting for the 100% of the total)

• 8 GJ of natural gas for heating water

• 1039 GJ used by the temporary electricity generator

• 337GJ consumed by company cars

Our goal is to increase the share of renewable energy use. In 2023 we achieved an important milestone in this direction by turning down our last remaining diesel generator. To achieve this goal, we have invested 90.000 € in building an electricity cabin that will allow our production to rely solely on electricity. Already in 2023, although we switched off the generator in August, we had a 20% reduction in diesel consumption compared to 2022.

GRI 302-1 Total Energy consumption within the organization

Regarding energy intensity, relative to the 2023 Net Revenues, it is reported that energy consumed per million throughout the year is 90,39 GJ/ M€, with an 11% decrease.

Together with the organization's consumption, monitoring this index helps to contextualize the organization's efficiency, in relation to a specific parameter - net revenues.

ENERGY INTENSITY (GRI 302-3)

In line with the ambition to adopt an increasingly sustainable behavior, we recently began to monitor our greenhouse gas emissions . This enables us to plan future initiatives and projects to ensure ongoing reductions of our environmental impact. The following table details the main emissions generated by the Company. In compliance with the Greenhouse Gas (GHG) protocol, the principal emissions reporting standard, the emissions of Dr. Vranjes Firenze have been divided up by type.

Scope 1 emissions cover the GHG emissions made directly from sources owned or controlled by the Company, such as

combustion processes and transport with the Company owned vehicles. Scope 2 emissions are the indirect emissions of the Company, such as the production of electricity, heat or steam imported and then consumed on behalf of the organization. The reporting standard used (GRI Sustainability Reporting Standards) provides two different approaches to calculating Scope 2 emissions: Location-based and Market- based 5

Direct CO 2 emissions (Scope1 6) amounted to 97,91 tons of CO 2 , while indirect CO 2 emissions (Scope2 7 ) amounted to 134 tons of CO 2 (Location-based) and 0 tons of CO 2 (Market-based).

DIRECT AND INDIRECT GHG EMISSIONS (GRI 305-1 & GRI 305-2)

(Scope 2 –Location Based Method)

(Scope2 – Market Based Method)

Regarding emission intensity (GRI 305-4), in relation to Net Revenues, the rates for absolute GHG emissions are shown below:

GHG EMISSIONS INTENSITY (GRI 305-4)

As with energy intensity, monitoring these indices helps to put the organization's efficiency into context, in relation to a specific parameter, Net Revenues. Sustainability Report 2023 | Dr.

9. - Market-based emission intensity was calculated by accounting exclusively for energy derived from non-renewable sources.

8.2 PLANNING AHEAD A MORE SUSTAINABLE LOGISTICS MANAGEMENT

IN THE

CREATION

AND THE DELIVERY OF EVERY DR. VRANJES FIRENZE

PRODUCT, WE ALWAYS STRIVE TO LOWER OUR ENVIRONMENTAL IMPACT IN TERMS OF CO 2 EMISSIONS.

We take into account the entire lifecycle of our products, and we have thought of several projects to improve the management of our logistics operations with the goal of reducing our emissions. Carefully planning ahead our supply needs helps reduce the number of trips that are necessary for deliveries to our production site, without anything going to waste.

In addition to the measures described in chapter 6.2 (pag. 30), we have also planned to move our warehouse closer, in a new space that’s only 4,5 km from our production site, as opposed to current distance of 22,7 km and by 2024 we will be able to calculate the CO 2 emissions saving.

As far as our truck shipments are concerned, they are carbon neutral from 2022, as the emissions generated by this activity are punctually measured and offset by the shipper with carbonoffsetting activities certified VCS (Verified Carbon Standard). Since 2021, we have integrated a vertical warehouse to respond

8.3 WASTE MANAGEMENT

to orders from e-commerce. This system optimises the available space (as it is vertical) and facilitates the activities of the operators who always pick up products from the same pick-up bay, saving time and avoiding the need to move goods at height, thus also improving overall safety. Another great opportunity for improvement concerns the wooden pallets currently used. Wooden pallets wear out and break quite easily, requiring frequent replacement.

Over the next 5 years we will gradually switch to plastic pallets, replacing the current ones as they meet their end-of-life: not only are they made of recycled plastic (instead of new wood), but they are much more durable, as they are expected to last at least 10 years and can be recycled at the end of their use.

In 2023 we upgraded our taping machines, replacing plastic adhesive tape with paper tape and testing it to ensure its performance.

DR. VRANJES FIRENZE RECOGNIZES THE IMPORTANCE OF ENSURING THE RESPONSIBLE MANAGEMENT OF THE WASTE PRODUCED AS A RESULT OF OUR ACTIVITIES. WHERE POSSIBLE, WE TRY TO PROMOTE RECYCLING IN ORDER TO REDUCE THE QUANTITY OF WASTE REQUIRING DISPOSAL.

Our Company's total waste output is disposed in compliance with regulations. Although we acknowledge the need of implementing a formalized waste management system , we currently do not have a structured system in place to monitor the total amount of waste produced.

Aware of the importance of reducing waste production, even before identifying strategies for the reuse and recycling of waste, we are committed to reducing the quantity of waste produced during our daily activities, not only in the production cycle. Where possible, we seek to promote recycling and reuse to limit the amount of waste that must be disposed of. For example, in

our factory in Sesto Fiorentino, we reuse our cardboard boxes and other containers as much as possible and all the waste produced in the plant is sorted and recycled by an external supplier.

The factory also complies with the legislation on the separate collection of all types of waste and specific checks have been put in place to detect any system malfunctions. Moreover, we carry out on spot-initiatives to optimize the use of the waste we produce daily (e.g., the use of recycled plastic for refills and courtesy products).

PALLET WRAPPING MACHINE

During March 2022 we installed an automatic pallet wrapping machine inside our logistics warehouse. This upgrade was done to improve our workers’ safety, as the machinery is able to operate autonomously, while the workers overlook the process, lowering the risk of accidents. Moreover, the new pallet-wrapping machine is able to stretch the extendable film much more than it is manually feasible, thus enabling us to reduce the consumption of plastic and our impact on the environment. We estimated a reduction in plastic consumption of 500 kg in 2022 and 600kg in 2023, for a total amount of 1100kg of plastic saved thanks to this simple innovation.

E-COMMERCE PACKAGING REDUCTION

In 2019, we had only one type of box for different sizes of products which often resulted in wasted cardboard and plastic. To respond to this significant amount of produced waste, in 2020, we introduced three different sizes of boxes to reduce their volume and weight, and we started to significantly reduce the materials and plastic used for packaging. Therefore, we transitioned from having boxes with little brand identity to a packaging customized for each product, with imagery focused on our beloved city of Florence.

Thanks to this project, several other items have been optimized. As an example, we started to replace the plastic tape used for packaging with a " water tape," which reduces and, in some cases, even eliminates the use of plastic altogether. To inform our clients of our commitment towards a more sustainable value chain, we decided to print “100% recyclable” on the tape in order to assist them in recycling correctly.

This project involved 85% of B2C packaging and allowed us to halve the size and weight of B2C tertiary packaging. Moreover, we have substituted the plastic used for packing material (such as bubble wrap) with recycled paper, which we enforced starting in October 2022 for all deliveries in Italy. This simple measure has led to a plastic saving of almost 2300kg in 2023 and with a CO 2 reduction of 68%.

FRAGRANCE SAVING FOR RINSING THE BOTTLING MACHINE

When bottling our fragrances, we need to rinse the line between fragrances to avoid any contamination that would modify the smell of our final products. The fragrance we use for rinsing inevitably becomes waste, so we are always thinking of new solutions for reducing it. In 2022 we came up with a modification of the filling tubes and of the rinsing system that allowed us to save the astonishing amount of 1.116 Kg of fragrance in just six months of application, and 2,739kg of fragrance in 2023, thus reducing both the impact of the waste itself and its disposal

Sustainability Report 2023 | Dr. Vranjes Firenze

RECYCLED PLASTIC BOXES

The considerable production increase from 2019 to 2022 has also caused a growth in the use of carton boxes, which up to 2020 were utilized both for stocking and for packaging. Therefore, Dr. Vranjes Firenze decided to analyze and monitor the matter, aiming to find an effective way to reduce the consumption of tertiary packaging.

Inspired by the food industry, the corrective measures we adopted consisted to internally reusing the tertiary packaging where possible, and to adopt recycled plastic boxes instead of carton boxes to stock - internally in our warehouse - our precious glass bottles, as plastic boxes can be reused for more than six years.

Through these actions, our cardboard waste has been reducing constantly, despite the production increase, and between 2021 and 2022 Dr. Vranjes was able to decrease both cardboard waste - by 31% - and the CO 2 emission generated by the disposal of such waste. In fact, Dr. Vranjes managed to achieve zero waste

WATER CONSUMPTION

DR. VRANJES FIRENZE HAS ALWAYS WORKED HARD TO ENSURE THAT WATER CONSUMPTION IS CONSTANTLY MONITORED AND PLANS TECHNICAL CHECKS IN THE EVENT OF SIGNIFICANT CHANGES TO PAST CONSUMPTION LEVELS.

Both our sites generate only domestic sanitary wastewaters and rainwater collected from rooftops . The site management confirmed that no liquid effluents are generated by the mixing and bottling activities. Wastewater is discharged directly into the Sesto Fiorentino and Antella municipal sewer systems. Consequently, given the absence of any industrial wastewater, no discharge permit is required, none is held, and no management system of water discharge is in place.

METHODOLOGICAL NOTE

This document represents the third Sustainability Report of Dr. Vranjes Firenze S.p.A. (here in after also “Dr. Vranjes Firenze” or “the Company”), describing the initiatives and the main results in terms of sustainability performance achieved during 2023.

The information and data reported refer to the year 2023 (January 1st 2023 to December 31st 2023). To allow the comparability of data over time and to assess the performance of the activities of the Company, a comparison with the previous year was proposed.

The Sustainability Report was prepared with reference to the “GRI Sustainability Reporting Standards”, published by the Global Reporting Initiative (GRI). In Chapter 10 of this document, there is a table of GRI indicators reported (“GRI Content Index”) that serves as a compass for readers. The contents and indicators reported were selected through the materiality analysis contained in this Sustainability Report, which identified material aspects for the Company that could substantially influence the assessments and decisions of stakeholders.

The process of defining the contents of this document was based on the principles of materiality, inclusion of stakeholders, completeness of data and the business context. The principles

of balance, accuracy, verifiability and comparability were followed with reference to the quality of the reported information.

The reporting scope of economic and financial information corresponds to that of the Consolidated Financial Statements of Dr. Vranjes Firenze S.p.A. as December 31st, 2023. With regard to social data and information, the reporting scope includes the Italian and American sites, whereas the environmental data only refers to the Italian site, as such data related to the American subsidiary is not relevant compared to the Company’s environmental impacts.

Moreover, in order to ensure a correct representation of performance and to guarantee the reliability of the data, the use of estimates has been limited as much as possible, which, if present, are based on the best available and properly reported methodologies. The measurement system used to represent decimal numbers in the tables in this document refers to the Italian system, which has a comma as a decimal separator. The periodicity of the Sustainability Report is set on an annual basis.

The Sustainability Report is also available on the website of Dr. Vranjes Firenze: www.drvranjes.com

9. APPENDIX

GRI 2-7 & 2-8

GRI 2-6 Scale of the organization (location of operations)

Via Ettore Majorana, 73 Sesto Fiorentino

13.- Energy Consumption includes the use of Natural Gas and Diesel (temporary electric generator). Conversion factors for energy consumption for 2023: heating oil=42,873 GJ/ton (Ministero dell’Ambiente 2022); natural gas=0,0353 GJ/ton (Ministero dell’Ambiente 2023). Conversion factors for corporate fleet for 2022: diesel=41,072 GJ/ton (Ministero dell’Ambiente 2023); gasoline=43,128 GJ/ton (Ministero dell’Ambiente 2023); LPG= 45,858 GJ/ton (Ministero dell’Ambiente 2023); methane 1,389 GJ/m3 (Ministero dell’Ambiente 2022). For the conversion of electricity in GJ: constant of 0.0036 GJ/kWh (Linee guida ABI-Lab versione 13/12/2018). 14. - For the calculation of Scope 1

GRI 401-1 New hires
GRI 401-1 New hires rate

GRI 403-9 Work-related injuries

GRI 404-1 Hours of training by employee category and gender

RI 3-2 List of material topics

Ethics and responsible business

Anticorruption

Governance

Governance and economic responsibility

Fair and transparent stakeholders relations

Active and passive corruption

Non-compliance with internal company policies andprocedures with related negative social, environmental and/or economic impacts

Opportunities to evolving topics inESG

Stakeholders interests and expectations in the ESG area

Ethical and transparent conduct of business activities

Failure to adopt practices and policies aimed at preventingactiveandpassive corruption events also in relation to the external stakeholders with which the company interacts

Conduct that does not comply with company proceduresand policies that impact theorganisation internally and externally

Development of fair, transparent and constructive relations with stakeholders, with particular reference to investors, in order to meet ESG interests and expectations through the continuation of the sustainability path proposed by Dr. Vranjes

Causedby theGroupand directly related to its business relations Positive

Causedby theGroupand directly related to its business relations Negative

Responsibility towards our people

Compliance and Risk management

Employee management and retention

Development and employee training

Diversity and inclusion

Employeewelfare and wellbeing

Occupational health and safety

Made in Italy

Implementation of thepolicies and procedures established in Risk management

Low staff turnover and retention ofkey knowledge

Activedevelopment of employee skills

Valuing diversity and inclusion

Employeewelfare and fair employment

Poor health and safety awareness

Promotion of e ective riskmanagement by promoting responsible behaviour across all corporate functions

Retention and enhancement of human resources, resulting in greater growth andcompetitiveness of the company

Training and development activities of its people through structured processes geared towards the acquisition of new skills

Development of appropriate working practices and conditions to ensure equal opportunities, throughthe removal of all forms of discrimination

Initiativesby thecompany in ensuring thewell-beingof itsemployees, recognising the importance of a proper work-life balance

Failuretoadopt policiesand conduct aimed at ensuring health and safety in the workplace

Caused by the Group Negative

Causedbythe Groupand directly related to its business relations Positive

Caused by the Group Positive

Caused by the Group Positive

Caused by the Group Positive

Caused by the Group Positive

Caused by the Group Positive

Caused by the Group Negative

Promotion ofMade in Italy and Italian excellence

Social responsibility

Local communities & social commitment

Support for localgrowthand development

The organisation paysparticularattention to product identity, guaranteeing Made in Italyexcellencewitha positive impact along the entire value chain

Continuous initiativesaimed at developing theterritory andits cultural heritagethrough the involvement of the community in which the company operates

Caused by the Group Positive

Caused by the Group Positive

GRI 3-2 List of material topics

Macro-topic

Product responsibility Innovation Development

Quality, safety and sustainability of the product

Responsible packaging

Product certifications

Client satisfaction

Non-compliant products according to the main quality and safety standards

Responsiblemanagement ofavailable resources

Creation of a certified supply chain

Stakeholder satisfaction

Chain management Practices

Responsabilità della supply chain

Traceability of the supply chain and raw materials

Circular Economy

Energy effciency

Emissions reduction

Environmental responsibility

Lack of transparency and absence of clear and accessible policies along the supply chain

Contribution to the transition to a circular economy

Generation of climate-altering emissions and contribution to the variation of average temperatures

Reducing the organization's environmental impact

Wastewater management

Presence of chemicals in wastewater

Waste management and recycling

products

Development of products without the use of raw materials and production processes to ensure high quality, durability, safety and sustainability in linewith customer expectations

Development of packagingthat respects minimum criteria of environmental responsibility

The organisation's focus on ESG issues in the procurement of its rawmaterials to generate positive impacts on the social and environmental awareness of suppliercompanies.

Developingando eringqualityproductsthatmeetthe needs of stakeholders

and sustainable behaviour, which assess the performance of the suppliers involved on the basis of ESG criteria

Lack of specific tools to ensure clear and accessible policies for all supply chain actors for the activities and processes carried out along the supply chain

Development of initiatives aimed at activities that minimise the company's impact on environmenta l resources

Organisation's lack of commitment to the environment and absence of a carbon-neutral energy production and consumption system using renewable energy sources

Conscious management of the organisation's business-related emissions through the promotion of conscious management methods and practices

Presence of toxic and hazardous substances in products, due to the failure to implement and expand eco-toxicological tests on raw materials and finished products

by the Group Positive

Causedby the Group and directly related to its business relations Negative

Caused by the Group Positive

Caused by the Group Positive

Caused by the Group Positive

directly related to its business relations Positive

Caused by the Group and directly related to its business relations Negative

Caused by the Group Positive

Caused by the Group Negative

Caused by the Group Positive

Caused by the Group Negative

Waste reduction and recycling

Conscious management of hazardous and non- hazardous waste related to the organisation's business activities through the promotion of conscious management methods and practices

Caused by the Group Positive

10. GRI CONTENT INDEX

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